The Housing Market Is More Local Than Ever – Here’s Why
Confused about the housing market? You’re not alone.
While consumer confidence about the state of real estate continues to poll low, most markets around the country are seeing a steady stream of activity.
So why are national headlines constantly highlighting the housing market’s inevitable demise? The short answer is this: because real estate is more local than ever.
National trends, insights and data aren’t always reflective of what’s really happening in most markets around the country.
Which brings up the question…what is really happening in the housing market today? We’ve got the scoop for you.
How did we get here?
For the last number of years, the housing market has been one of the hottest topics, for better or worse, flooding feeds with headlines and grand statements about everything from bidding wars to price declines and housing crashes.
And for the most part during the “Unicorn Years” between 2019-2021, the trends and insights being reported applied to nearly every market in the country. Prices were appreciating, mortgage rates were low, bidding wars were high, and average days on market were short.
It was a total feeding frenzy, and business was booming.
And then, like the flick of a switch, that all changed.
The shock of rising mortgage rates stopped many buyers and sellers in their tracks, waiting in a holding pattern for them to go back down again. While they’ve budged a little from their peak of 7.08% last October, they’re unlikely to go back down significantly any time soon.
However, that uneasiness has seemed to have worn off as consumers get used to the “new normal” of today’s housing market.
“Real estate markets are showing resilience, especially as buyers have accepted mortgage rates in the new normal of 6% – 7% range,” said George Ratiu, Chief Economist at Keeping Current Matters. “This has kept a steady pace of sales over the past few months.”
The key word to focus on here is resilience. Despite the rollercoaster we’ve seen the past number of years with everything that’s been thrown our way – real estate continues to stay strong. Some experts may even say this is one of the strongest housing markets we’ve ever experienced, and it won’t be slowing down anytime soon.
That’s what your clients need to be told. That’s what they need to be reminded of every day, week, or month, and in every way you can.
That’s why it’s never been more important to not only tell them but show them what’s actually happening in their market. That way, they can see for themselves that prices are, for instance, rising and pacing higher than the national average. And that homes are selling and selling fast (when priced correctly). Then wash, rinse, and repeat over and over again because studies show that people have to hear and see things several times before it actually sticks.
This is one major thing that will drive your business forward and set you apart in one of, undoubtedly, the most confusing housing markets of our time.
How to be the Local Market Expert
While your news feed may be filled with doom and gloom about the state of the real estate market, what’s actually happening in your area may be the opposite.
The thing that matters most here is that your clients are likely seeing those same messages in their daily dose of scrolling, which leads to even more confusion. They need to know what’s happening locally right now, and they need to hear it from you – their trusted real estate professional.
This is why it’s never been more important for you to know every little detail and piece of data of what’s happening in your area – down to the zipcode. Then, you’ve got to take the data and information and put it on blast.
Post it on social media, create weekly or monthly market update videos, add it to your buyer or seller presentations and guides, email campaigns – repetition, repetition – you get the picture.
There is no such thing as too much information, especially when you want your voice and your message to be louder than all the noise we’re bombarded with on a daily basis.
In fact, research shows that the average prospect needs to hear a message seven times before they take action. Overcommunication, especially in today’s market, is one of the most important (and effective) parts of your business strategy you can implement. That’s how you truly become the local market expert.
As the old adage goes, you have to play the hand you’re dealt.
However, unlike gambling, your real estate business cannot be built on luck. Many agents got lucky with how easy it was to attain business during the “unicorn years” but this market is different, and what worked before most likely will not work now.
While that “boom” may be slower, it’s not over. People will always need to buy or sell a home, and that means they will always need you. And when mortgage rates drop, there will be an influx of ready buyers and sellers so you must be prepared now.